Approved Code No. 84-Supplement No. 20 Registry No. 1104-09 

NATIONAL RECOVERY ADMINISTRATION 

SUPPLEMENTARY 

CODE OF FAIR COMPETITION 

FOR THE 

MACHINE SCREW NUT 

MANUFACTURING INDUSTRY 

A' 

(A Division of the Fabricated Metal Products 

Manufacturing and Metal Finishing 

and Metal Coating Industry) 

AS APPROVED ON MAY 5, 1934 

WE DO OUR PART 

_ .......... 

U.S. I)Efl 

UNlTED STATES 

GOVERNMENT PRINTING OFFICE 

W ASIDNGTON : 1934 

\ 

I 

For sale by the Superintendent of Documents, Washington, D.C. - - - - - - - - Price 5 cents 
This publication is for sale by the Superintendent of Documents, Government 

Printing Office, Washington, D.C., and by district offices of the Bureau of 

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Approved Code No. 84-Supplement No. 20 

SUPPLEMENTARY CODE OF FAIR COMPETITION 

FOR THE 

MACHINE SCRE\V NUT MANUFACTURING 

INDUSTRY 

As Approved on May 5, 1934 

ORDER 

APPROVING SuPPLEMENTARY CoDE OF FAIR Col\IPETITION FOR THE 

:MACHINE ScREW NuT :MANUFACTURING INDUSTRY 

A DIVISION OF THE FABRICATED l\1ETAL PRODUCTS MANUFACTURING AND 

METAL FINISHING AND l\IETAL COATING IND TRY 

An application having been duly made pursuant to and in full 

compliance with the provisions of Title I of the National Industrial 

Recoyery Act, approved June 16, 1933, and in accordance with the 

provisions of Section I of Article VI of the Basic Code for the 

Fabricated Metal Products l\1anufacturing and Metal Finishing and 

Metal Coating Industry, approved November 2 1933, for appro\ al 

of a Supplementary Code of Fair Competition for the Mach_ine 

Screw Nut :Manufacturing Industry, and hearing having been duly 

held thereon; and the annexed report on said Supplementary Code, 

containing findings with respect thereto, having been made and 

directed to the President : 

NO\V, THEREFORE, on behalf of the President of the United 

States I , Hugh S. Johnson Administrator for Industrial Recovery, 

pursuant to authority vested in me by ExecutiYe Orders of the Pre ident including Executive Order No. 6543-A, dated December 30, 

1933, and otherwise; do hereby incorporate by reference said an- nexed report and do find that aid Supplementary Code complies in 

all respects with the pertinent provisions and will promote the policy 

and purposes of said Title of said Act; and do hereby order that 

said Supplementary Code of Fair Competition be and it is hereby 

approved; provided however that the provisions of Article V, Section 2, insofar as they prescribe a waiting period between the filing 

with the Code Authority or such agency as may be designated in the 

Code, and the effective date of price lists, as originally filed and/ or 

revised price lists or revised terms and conditions of sale, be and they 

hereby are stayed pending my further Order. 

HuGHS. JoHNSON, 

ArP!ninistrator for I ndwstriai R ecove1"Y· 

Approval recommended : 

A. R. GLANCY, 

Division Ad1ninistrator. 

WASIDNGTON, D.C., 

Llf ay 5, ~934. 

57213°-.-544-34-34 (1) 
·R-EPORT 'rO-THE PRESIDENT 

The PRESIDENT, 

The White House. 

SIR : This is a report on the Supplementary Code of Fair Competition for the Machine Screw Nut Manufacturing Industry, a 

division of the Fabricated Metal Products Manufacturing and Metal 

Finishing and lVIetal Coating Industry, the hearing having been conducted thereon in vVashington, D.C., February 2, 1934, in accordance 

with the provisions of Title I of the National Industrial Recovery 

A ct. 

GENERAL STATEMENT 

The Machine Screw Nut Manufacturing Industry, being truly 

repre ·entative of this division of the Fabr.icated Metal Products 

1\1anufacturing and Metal Finishing and Metal Coating Industry, 

has elected to avail itself of the option of submitting a Supplementary Code of Fair Competition, as provided for in Section 1 

of Article VI of the Basic Code, for the Fabricated Metal Products 

Manufacturing and Metal Finishing and lVIetal Coating I ndustry 

approved by you on the second day of November, 1933. 

RESUME OF THE CODE 

Article I states the purpose of the Suppleme.ntary Code. 

Article II accurately defines specific terms employed in the Supplementary Code. 

Article III. This Industry is a division of the F abricated Metal 

Products Manufacturing and Metal Finishing and Metal Coating 

Industry and the labor provisions of its Basic Code, as approved 

November 2, 1933, are the labor provisions of this Supplementary 

Code. 

Article IV establishes a Supplementary Code Authority consisting 

of five (5) members to be elected by the members of the Industry 

at a meeting called by the Temporary Supplementary Code Authority, and giYes the Administrator the authority to appoint one additional member without vote and provides machinery for obtaining 

stati tics and the administration of the Supplementary Code. 

Article V provides for methods of setting up and revising price 

lists. 

Aiticle VI provides for determining the lowest reasonable costs of 

the products of this Industry. 

Article VII sets forth the unfair trade practices of this Supplementary Code which has been e pecially designed to offset unfair 

competition in this division of the Industry. 

Article VIII provides against monopolies and monopolistic 

practices. 

(2) 
3 

Article IX contains the mandatory prov1s10ns contained in Section 10 (b) and also provides for the ubmi ion of propo ed amendments t:> the Supplementary Code. 

Article X recognizes that price increases be limited to actual additional increases in the seller's co ts. Article XI states the effective date and duration of this Supplementary Code. 

FINDINGS 

The Deputy Administrator in his final report to me on said Supplementary Code having found a herein set forth and on the ba is 

of all the proceeding in this matter: 

I find that: 

(a) Said Supplementary Code is well designed to promote the 

policies and purposes of Title I of the National Indu trial Recovery 

Act, including removal of obstructions to the free flow of interstate 

and foreign commerce which tend to diminish the amount thereof and 

will provide for the general welfare by promoting the organization 

of industry for the purposes of cooperative action among the trade 

groups, by inducing and maintaining united action of labor and 

management under adequate governmental sanctions and supervision, 

by eliminating unfair competitive practices, by promoting the fulle t 

possible utilization of the present productive capacity of industries, 

by avoiding undue restriction of production (except as may be temporarily required), by increasing the consumption of industrial and 

agricultural products through increasing purcha ing power, by reducing and relieving unemployment, by improving tandards of 

labor, and by otherwise rehabilitating industry. 

(b) Said Industry normally employs not more than 50,000 employees· and is not classified by me as a major industry. 

(c) The Supplementary Code as approved complies in all respects 

with the pertinent provisions of said Title of said Act, including 

without limitation Subsection (a) of Section 3, Subsection (a) of 

Section 7, and Subsection (b) of Se~tion 10 thereof; and that the 

applicant group is an industrial group truly representative of the 

aforesaid Industry; and that said group imposes no inequitable retrictions on admission to membership therein. 

(d) The Supplementary Code is not designed to and will not 

permit monopolies or monopolistic practices. 

(e) The Supplementary Code is not designed to and will not eliminate or oppress small enterprises and will not operate to discriminate 

against them. 

(£) Those engaged in other steps of the economic process have not 

been deprived of the right to be heard prior to approval of said 

Supplementary Code. 

For these reasons, therefore, I have approved this Supplementary 

Code. 

Respectfully, 

MAY 5, 1934. 

HuGH S. JoHNSON, 

Administrator. 
SUPPLEMENTAR Y CODE OF F AIR COMPETITION FOR 

THE MACHINE SCREW NUT MANUFACTURING INDUSTRY 

A DIVISION OF THE FABRICATED METAL PRODUOTS MANUFACTURING AND 

METAL FINISHING AND METAL COATING INDUSTRY 

ARTICLE I-PURPOSES 

To effectuate the policy of Title I of the National I ndustrial 

Recovery Act, the following provisions are established as a Supplementary Code of Fair Competition for the Machine Screw Nut 

Manufacturing Industry, pursuant to Article VI of the Basic Code 

of Fair Competition for the Fabricated Metal Products lVIanufact.uring and Metal Finishing and :Metal Coating Industry, approved 

by the President on the 2nd day of November, 1D33, and the provisions of this Supplementary Code shall be the standard of fair 

competition for such Industry and shall be binding upon every 

member thereof. 

ARTICLE II-DEFINITIONS 

SECTION 1. The terms "President," "Act" and "Administrator," 

as used herein shall mean respectively, the President of the United 

States, the National Industrial Recovery Act, and the Administr ator 

for Industrial Recovery under said Act. 

SECTION 2. The term " Machine Screw Nuts '' is defined as all 

hexagon, square or other shapes and styles of nuts stamped, punched 

and/ or upset from all metals made for all sizes of :Machine Screws 

as defined in the Supplementary Code of Fair Competition of the 

Machine Screw Manufacturing Industry, except (a) those nuts 

which are manufactured andj or sold for use with or on those 

products which fall within the following definition: 

"The term 'products' means and includes bolts, nuts and/ or 

rivets fabricated from ferrous metals and miscellaneous headed, 

threaded, punched andj or bent product fabricated from ferrous 

metals by the producers of bolts, nuts and /or rivet with the use of 

equipment that is used in the production of bolts, nut , and/or rivets, 

but not, however, including (a) cap crews, (b) set screws, (c) 

n1achine screws as defined in the Supplementary Code of the Machine Screw Manufacturing Industry, (d) ocket screws, (e) wood 

screws, (f) machine screw nut a defined in the Supplementary 

Code of the ~1achine Screw Nut lVIanufacturino· Industry, (g) screw 

machine products as defined in the Supplementary Code of the 

Screw Machine Products ~1anufacturing Industry, (h) drive screws 

shorter than four and one-half inches in length and smaller than 

seven-sixteenths of an inch in diameter, ( i) builders finishing hard-

(4) 
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- ware and locks, and (j) patented ' Grip Lock Nuts' or any of 

them." 

al o excepting (b) screw machine products as defined in the Supplementary Code of the Screw Machine Products ~1anufacturing 

Industry. 

SECTION 3. The term " product " means and include ~1achine 

S rew Nuts a that term i defined herein. 

SECTION 4. The term "Industry " means and includes the business 

of manufacturing Machine Screw Nuts for sale. 

SECTION 5. The term "~1ember of the Indu try " as used herein 

include , but without limitation, any indi\ idual, partnership, a socia-· tion, corporation or other form of enterprise engaged in the Indu try 

either as an employer or on his or its O\\n behalf. 

SECTION 6. The term "employee" as used herein includes anyone 

engaged in the Indu try in any capacity recei\ ing compensation for 

his service irrespectiYe of the nature or method of payment of such 

compensation, except a member of the Industry. 

SECTION 7. The term "em.ployer" as used herein includes an} one 

by whom any uch employee is compensated or employed. 

SECTION 8. The term. " Basic Code ' a u eel herein is defined to 

mean the Ba ic Code of Fair Competition for the Fabricated Metal 

Products Manufacturing and Metal Finishing and Metal Coating 

Industry as approved by the Pre ident on the 2nd day of November, 

1933. 

SEcTION 9. The term "member of the Code" as use l herein sh-all 

mean any member of the Industry who shall have assented to the 

provisions of this Supplementary Code by instrument in writing 

duly filed with the Secretary. 

SECTION 10. The term " Supplementary Code Authority ' as u ed 

herein is defined to mean the agency which is to administer this 

Supplementary Code as hereinafter provided. 

SEcTION 11. The term ' Bureau" as used herein i defined to mean 

the Machine Screw Nut Bureau, or its successor. 

SECTION 12. The term "Executive Committee" a used herein is 

defined to mean Executive Committee of the ~1a hine Screw Nut 

Bureau. 

SECTION 13. The term " Secretary " as used herein is defined to 

mean Secretary of the :Machine Screw Nut Bureau, or such other 

impartial and confidential agency as the Supplementary Code 

Authority may designate. 

ARTICLE III-EMPLOYMENT PROVISIONS 

This Industry is a division of the Fabricated ~1etal Products 

Manufacturing and Metal Finishing and Metal Coating Industry 

and the wage hour and labor provisions in Article III of its basic 

code as appro' ed by the President November 2, 1933, including Section 1 of said Article III by which the provisions of Subsections (1), 

(2) and (3) of Section 7 (a) of Title I of the Act are made conditions of this Code, are specifically incorporated herein and made a 

part hereof as the wage, hour and labor provisions of this Supplementary Code. 
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ARTICLE IV-ORGANIZATION AND ADMINISTRATION 

SECTION 1. During the period not to exceed sixty (60) days following the effective date, the Executive Commit~e shall constitute a 

Temporary Supplementary Code Authority, who shall have all the 

powers and duties of the Supplementary Code Authority herein set 

forth, until the Supplementary Code Authority is elected. There 

shall be constituted within the sixty-day period a Supple1nentary 

Code Authority consisting of five (5) members to be elected by the 

members of the Industry, as hereinafter provided, at a meeting 

called by the Temporary Supplementary Code Authority, upon ten · ( 10) days' notice sent by registered mail to all known members of 

the Indu try whose names can be ascertained after diligent search, 

who may vote either in person or by proxy. The members of the 

Supplementary Code Authority first elected shall serve until the 

following annual meeting of the Bureau and/ or until their successors are elected, and thereafter, members of the Supplementary Code 

Authority shall be elected immediately after each annual meeting of 

the Bureau to serve until their successors are elected, and any member shall be eligible for re-election. Notice of each election shall be 

sent in the manner above provided. The membership of the Supplementary Code Authority shall be made up as follows: 

(a) 1. Four (4) members who shall be members of the Industry 

elected by a majority vote of the members of the Bureau present in 

person or represented by proxy, each member to have one vote; 

2. At any time upon the request in writing of twenty-five percent 

(25 % ) of the members of the Bureau, the Supplementary Code 

Authority shall call a meeting of the members of the Bureau upon 

the notice above provided, for the purpose of electing successors to 

such four members of the Supplementary Code Authority to be 

elected in the same manner as provided in Sub-Paragraph 1 of this 

Paragraph (a) ; 

(b) One (1) member who is not a member of the Bureau elected 

by n1ajority vo~ of the members of the Industry not members of 

the Bureau, present in person or represented by proxy, each member 

to have one vote; 

(c) A vacancy in the membership of the Supplementary Code 

Authority may be filled by majority vote of the remaining members 

of the Supplementary Code Authority; 

(d) In addition to the above the Administrator may appoint one 

(1) representative without vote and without expense to the Industry 

unless the Supplementary Code Authority agrees to pay such expense 

to serve on said Supplementary Code Authority in the admini tration of this Supplementary Code. Said representative shall be given 

reasonable notice of all meetings of the Supplementary Code 

Authority. 

SECTION 2. Any Association/Institute and/ or Bureau directly or 

indirectly participating in the selection or activities of the Supplementary Code Authority shall (1) impose no inequitable restrictions 

on membership, and (2:) submit to the Administrator true copies of 

its Articles of Association, By-Laws, Regulations and any amendments when made thereto, together with such other information as 
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to membership, organization, and activities as the Administrator 

may deem nece ary to effectuate the purposes of the Act. 

SECTION 3. In order that the Suplementary Code Authority shall, 

at all times, be truly repre entative of the Industry -and in other 

re pects comply with the provisions of the Act, the Administrator 

may prescribe such HParings as he may deem proper; and, thereafter, 

if he shall find that the Supplementary Code Authority is not truly 

representative or does not in other respects comply with the provisions of the Act, may require removal of any or all of the members 

thereof and/or may make an appropriate modification or modifications in the method of election of the Supplementary Code 

Authority. 

SEcTION 4. The Supplementary Code Authority is hereby constituted the Agency to administer the provisions of this Supplementary Code and to collect and distribute all statistical reports of the 

Industry. With a view to keeping the President informed as to the 

observance or non-observance of this Supplementary Code, said 

agency shall collect, through the Secretary, such statistics as called 

for by the President and/ or the Administrator and send them in 

such form as the President and/ or the Administrator may require 

to the Fabricated JYietal Products Federation, or successor organization, as the agency administering said Basic Code. All individual 

reports shall be treated as confidential by the Secretary and shall 

not be disclosed to any member of the Industry or any other party 

except where necessary in the enforcement of this Code and except 

to such governmental agencies as may be directed by the Administrator. 

SEcTION 5: Said Agency shall also from time to time furnish to 

the Basic Code Authority, designated in said Basic Code such information as may be required to be furnished under the terms of 

said Basic Code. 

SECTION 6. The Supplementary Code Authority shall have power 

from time to time to require each member of the Industry to furnish 

to the Secretary uch information concerning the production, shipments, sales and orders of such member and the hours of labor, rates 

of pay and other conditions of employment at the plant or plants of 

such member and such other information as the said Supplementary 

Code Authority shall deem neces ary or proper in order to effectuate 

the purposes of this Supplementary Code and the policy of the Act. 

All individual reports shall be treated as confidential by the Secretary and shall not be disclosed to any member of the Industry or any 

other party except where nece sary in the enforcement of this Code 

and except to such governmental agencies as may be directed by 

the Administrator. 

SECTION 7. The Supplementary Code Authority may require that 

any such information be furni hed periodically at such time as it 

shall specify and may require that any or all information furnished 

be sworn to or otherwise certified or authenticated as it shall prescribe. Failure of any member of the Industry promptly to furnish 

to the Secretary information required by the said Supplementary 

Code Authority and substantially in the form prescribed by it shall 

constitute a violation of the Code. The Supplementary Code Authority shall not require any information regarding trade secrets. 

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SECTION 8. Any or all information furnished to the Secretary by 

any corporate member of the Industry specifically assenting hereto 

pur uant to the provision · of this Code shall be subject to verification by an examination of the pertinent or necessary books, accounts 

and records of such member by the Secretary or by any accountant 

or accountant or other per on or persons designated by the Supplementary Code Authority (none of whom shall be connected with any 

member of the Industry) and shall be so checke,9. for such purpose, 

if the Supplementary Code Authority shall require it. The cost of 

each such examination shall be treated as an expense of administering 

the Cocle. 

SECTION 9. All members of the Industry are subject to the jurisdiction of the Supplementary Code Authority; shall be entitled to 

participate in and share the benefits of the Supplementary Code 

Authority; shall be entitled to vote in the selection of the Supplementary Code Authority as provided in Section 1 of this Article; 

a.nd shall pay to the Secretary as the agent of the Supplementary 

Code Autho·rity their reasonable share of the expenses of the administration of this Supplementary Code, such reasonable share to be 

determined by the Supplementary Code Authority, subject to review 

by the Administrator, on the basis of volume of business and/ or such 

other factors as may be deemed equitable by the Supplementary Code 

Authority. . SECTION 10. Nothing contained in this Supplementary Code shall 

be deemed to constitute the members of the Supplementary Code 

Authority partners for any purpose whatsoever. Nor shall any 

member of the Supplementary Code Authority be liable in any manner to anyone for any act of any other member, officer, agent or 

employee of the Supplementary Code Authority. Nor shall any 

member of the Supplementary Code Authority, exercising reasonable 

diligence in the conduct of his duties hereunder, be liable to anyone 

for any action or omission to act under this Code, except for his own 

willful misfeasance or non-feasance. 

SECTION 11. The Supplementary Code Authority may adopt, subject to the approval of the Administrator, and thereafter all members 

of the Industry shall maintain, uniform credit terms. Such credit 

terms shall clearly appear on all quotations, invoices and acceptances 

of orders. 

SECTION 12. If any ·member of the Industry as defined herein is 

also a member of any other Industry, the provisions of this Code 

shall apply to and affect only that part of his business which is 

included in the Industry. 

SECTION 13. The Supplementary Code Authority shall without 

any limitation on the foregoing have the following further general 

powers and duties, subject to such rules and regulations as the Administrator may prescribe: 

(a) To insure the execution of the provisions of this Supplementary Code and provide for the compliance of the Industry with the 

provisions of the Act; 

(b) To adopt by-laws and rules and regulations for its procedure 

and for the administration of the Supplementary Code; 

(c) To obtain from members of the Industry such information 

and reports as are required for the administration of the Supple- l 
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mentary Code. In addition to information required to be submitted 

to the Supplementary Code Authority all or any of the per ons subject to this Supplementary Code shall furnish nch statistical information as the Administrator may deem neces ary for the purposes 

recited in Section 3 (a) of the Act to such Federal and State agencies 

as the Administrator may designate. Provided that nothing in this 

Supplementary Code shall relieve any member of the Industry of 

any existing obligations to furnish reports to any government 

agency· 

(d) To use such trade associations and other agencie a it deems 

proper for the carrying out of any of its activities provided :for 

herein, provided that nothing herein shall relieve the Supplementary 

Code Authority of its duties or respon ibilities under thi Supplementary Code and that such trade association and agencies shall 

at all times be subject to and comply with the provisions hereof; 

(e) To make recommendations to the Administrator for the coordination of the administration of thi Supplementary Code with 

such other codes, if any as may be related to the Industry; 

(f) To ecure from members of the Industry an equitable and 

proportionate payment of the reasonable expense of maintaining 

the Supplementary Code Authority and its actiYitie ; 

(g) To coop€r ate with the AdJnini trator in regulatin the use 

of any N.R.A. in ignia solely by those members of the Industry 

who have assented to and are complying with this Supplementary 

Code; 

(h) To recommend to the Administrator :further fair trade practice provisions to govern members of the Industry in their relations 

with each other or with other industries and to recommend to the 

Admini trator mea ures for industrial planning, including stabilization of employment. 

SECTION 14. If the Administrator believes that any action of the 

Supplementary Code Authority or any agency thereof is unfair 

or unjust or contrary to the public interest, the Admini trator may 

require that such action be suspended to afford an opportunity for 

inve tigation of the merits of such action. Further action by such 

Supplementray Code Authority or agency re<Yarding the matter 

complained of may be taken i:f approved by the Administrator but 

shall not b taken if disapproved by the Administrator within 

thirty (30) days of notice to him of intention to proceed with uch 

action. 

ARTICLE V-PRICE LISTS 

SECTION 1. The Supplementary Code Authority may r equire that 

eac:h member of the Indu try who manufactures and ells any product of the Industry not u ed by himself in the manufacture o:f another I roduct, ._·hall file with the Secretary and publi h a net price 

li t and/ or a price li t and discount heet indivi lually prepared by 

him showing his current prices and/or prices and di counts, and 

other condition of ale including discounts for Yariou cla es o:f 

en -tomer or :for quantity. SECTIO~ 2. The Secretary shall immediately send copie thereof 

to all other members of the Code. Such price li ts, discount and 

conditio.n may be revi eel from time to time thereafter, and notifi-
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-

cation of uch revision shall be filed with the Secretary and shall 

be made available to all interested parties. Such revision shall be 

deemed filed and effective within the meaning of this provision when 

teleoTaphic acknowledgment of receipt of such revi ion shall have 

been recei\ eel by the person making such revision and copies of 

such revision shall be immediately sent by the Secretary to all other 

members of the Code, who thereupon may file, if they so de ire, revi ion of their price lists, li counts and conditions which may become effective upon the date when the revised price data first filed 

shall go into effect or at a later specified date. 1 

SECTION 3. No member of the Industry shall sell directly or indirectly through an affiliated company, or otherwise, by any means 

whatever any product of the Industry at a price lower, or at discounts 

greater, or on conditions more favorable to the buyer than those 

provided in his current price data filed with the Secretary as above 

provided; provided, however, that at any time a member of the 

Industry may meet the lawful price, and conditions of any competitor for products of an equal grade or quality, or for products 

competing with products of the Industry. Any such meeting of 

a lawful price by a member of the Industry must be reported a.t once 

by such member to the Secretary. An "affiliated company" for the 

purpose of this section means a company the majority of whose 

voting stock is owned or controlled by a member of the Industry. 

For all purposes of this Article a delivery of any product made pursuant to a contract of a sale shall be regarded as a sale thereof made 

at the time of the making of such contract. Lawful price for the 

purposes of this Section is defined to mean any price which a member of the Industry may make pursuant to this Code, or any price 

which a competitor of any member of the Industry may make without violating any provision of any Code or Codes to which such 

competitor is subject or without violating any Federal Law, State 

Law, or the Law of any political subdivision thereof. 

SECTION 4. No provision of this Code relating to prices or terms of 

selling, shipping or marketing shall apply to export trade or sales 

or shipments for export within the meaning of the term "export 

trade " as it is used in the Export Trade Act. 

ARTicLE VI-SALES BELOW REASON ABLE CosT 

Notwithstanding any other provisions of this Supplementary 

Code, when the Supplementary Code Authority determines that an 

emergency exists in this Industry and that the cause thereof is 

destructive price-cutting such as to render ineffective or seriously 

endanger the maintenance of the provisions of this Supplementary 

Code, the Supplementary Code Authority may cause to be determined the lowest reasonable cost of the products of this Industry, 

such determination to be subject to such notice and hearing as the 

Administrator may require. The Administrator may approve, 

disapprove, or modify the determination. Thereafter, during the 

period of the emergency, it shall be an unfair trade practice for any 

member of the Industry to sell or offer to sell any products of the 

Industry for which the lowest reasonable cost has been determined 

1 See paragraph 2 of order approving this ode. 
11 

at such prices or upon such terms or conditions of sale that the buyer 

will pay less therefore than such lowest reasonable cost of such 

product . "Then it appears that condition have changed, the Supplementary 

Code Authority, upon its own initiative or upon the reque t of any 

interest d party, hall cau e the de+-ernlination to be review d. 

ARTI LE VII-U1-.TFAIR PRACTICES 

For all purpo es of this Supplementary Code the following described acts shall constitute unfair practice . uch unfair practices 

shall be deem d to be unfair method of competition in commerce 

within the meaning of the Federal Trade "ommi ion Act as am~"nded, and any member of the Indu try who hall directly or 

indirectly through any officer, employee agent or representative 

u e or emplo any of such unfair practice shall be guilty of a 

violation of this Cod . A. The provisions of Article V paragraphs B to G inclu ive, of 

the Ba ic Code are a part of this Supplementar; Code to the same 

extent a thouo·h here repeated and set forth at length. 

B. The ale or exchange of any product in whole or in part below 

the co t of such product to the particular member of the Industry, 

such cost to be computed according to a cost formula to be pre cribed 

or approYed by the Supplementary Code Authority and approved 

by the Admini trator · Provided, however, that dropped lines, seconds or inventories 

which must be converted into ca h to meet emergency need may 

be di po ed of in such manner and on such term and conditions as 

are nece sary to move such products into buy rs' hand notn·ithstanding any other provisions of this Code, provided the Secretary shall ha\e been notified, at lea t ten (10) day in advance, of 

such intended sale or other dispo ition and of the description, quantity and pri e thereof with the rea ons therefor and provided the 

Secretary on the direction of the Supplementary Code Authority 

has not before the termination of such ten day period, in wri in<Y, 

disapproved the proposed dispo al· uch disapproval hall be only 

on the ground of mi representation of facts; 

Provided, further, that selling below cost (as defined in SubParagraph 1 of thi Pararrraph B) to meet exi tin()' competition on 

products of equivalent de ign, character quality or specifications 

shall not be deemed a violation of this Article. 

C. U ing or substituting any material superior in qnalit_ to that 

specified by the purcha er of any product, for the purpose of infiuencino· purchase or future purchase. 

D. Cancellin<T in whole or in part or permitting the cancellation 

in whole or in part, of any contract of sale of any product except 

for ju tifiable cause or a fair consideration. 

E. Inducing or attempting to induce the breach of any provision 

of a contract to which a member of the Code is a party. This 

clan e hall not be con trued to apply to employment contracts. 

F. Aiding or abetting any person, firm, association of corporation 

in any unfair practice. 
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G. Offering or giving to any purchaser of any product any guaranty or protection in any form against decline in the market price 

of such product after the date of shipment. 

H. Selling or offering to sell special Machine Screw Nuts below the lawful price of the corresponding or the next larger standard or listed size Machine Screw Nut determined in accordance with 

the provisions of Article V hereof, plus the cost of the special feature or features. 

I. Soliciting by any member of the Industry the pooling of orders 

from several buyers in a manner to give the buyers advantage of 

more favorable price or terms than those to which the buyers would 

be entitled individually. 

J. Consigning merchandise for any reason whatsoever, except to 

a wholly owned or controlled subsidiary, or except under circumstances to be defined by the Supplementary Code Authority where 

peculiar circumstances in the Industry require the practice. 

K. Making contracts of sale that permit the buyer to cancel and/or 

provide for a reduced price in event of a market decline, but which 

do not· permit the seller to cancel andjor do not provide for an 

enhanced price, in the event of a market rise. 

L. :Making a contract requiring delivery of specified quantity or 

quantities in specified time, if demanded by buyer, but not requiring 

the buyer to accept such quantity or quantities within the specified 

time. ~L Making contracts at a specified price for an unspecified quantity for delivery as demanded by the buyer during the period unless 

the contract is for a fixed percentage of the total consumption requirements of the purchaser of the particular product and unless 

it is agreed in such contract that specifications placed during the 

last third period thereof shall not exceed the total pieces specified 

for shipment during the first two-thirds thereof; or making any 

such unspecified q~uantity contract above described except on a 

standard form or forms approved by the Supplementary Code 

Authority and the Administrator; and failing to file with the 

Secretary a copy of each and every different form of contract 

entered into by a member of the Industry within five ( 5) days after 

entering into a contract in such form. 

N. J\1aking contracts for periods in excess of three months (all 

contracts to expire not later than the last days of March, June, 

September or December) or quoting on or making any quarterly 

contract more than thirty (30) days prior to the first day of the 

calendar quarter covered by the contract, or shipping purs~ant. to 

any contract more than fifteen· (15) days after the exp1ratwn 

thereof, or as soon thereafter as seller can manufacture and ship the 

same, or making contracts containing an option of extension or 

renewal on the part of either buyer or seller. 

0. Accepting orders for deliveries extending beyond four ( 4) 

months from date of order. 

P. Offering any article by price ?r otherwise, in a manner to 

influence the purchase of another article. 

Q. Appointing, continuing to employ or paying a commission, 

salary or any other form of compensation to a jobber or dea~er 

or syndicate buyer of any character as an agent, except under c1r-
13 

cum tances where uch jobber dealer or yndicate buyer acts ·clearly 

as an agent and does not simultaneou ly p rform the functions of 

a jobber, dealer or yndicate buyer in a specific tran action or 

tran actions, or enterino' into any kind of an e:rclusive territory arrangement with a jobber dealer or syndicate buyer. 

R. Continuing to employ any alesman, agent or employee who 

shall give any or all of hi commi ion to any purchaser. 

ARTICLE \ III-Mo.r oPoLrEs 

No provision of this Supplementary Code shall be applied so as 

to permit monopolies or monopoli tic practices, or to eliminate, oppress or eli criminate against small enterprises. 

ARTICLE IX-MODIFICATIONS 

SE TION 1. Thi Supplementary Code and all the provi ions thereof 

are expre ly made subj ect to the right of the Pre ident, in accordance with provisions of subsection (b) of Section 10 of the Act, from 

time to time, to cancel or modify any order, approval, licen e, rule 

or regulation i sued under aid Act. 

SECTION Z. This Supplementary Code, except as to provisions required by the Act, may be modified or aman.ded on the basis of 

expetience or changes in cir um tances, such modification or amendments to be ba ·eel upon application by the Supplementary Code Author~ty or other repr sentative group within the Indu try to the 

Administrator and such Notice and H earing as he shall pecify and 

to become effecti\e and be a part of this Supplementary Code on 

approval by the Administrator. 

ARTICLE X-PRICE INCREA ES 

Whereas the policy of the Act to increase real purchasing power 

will be made more difficult of consummation if prices of good and 

services increa e as rapidlv as wages, it is r ecognized that price increa es except uch as may be required to meet individual cots 

should be delayed, but when made, such increases should, so far as 

possible, be limited to actual additional increases in the eller's costs. 

ARTICLE XI-EFFECTIVE DATE 

This Supplementary Code shall become effective at 12: 01 o'clock 

A.~I. Eastern Standard Time of the tenth day after it is approved 

by the Pre ident, and shall continue in effect until June 16 1935, or 

the earlie t date prior thereto on which the President shall, by 

proclamation, or the Congres shall, by joint resolution, declare that 

the emergency recognized by Section 1 of the Act, has ended. 

Approved Code No. 84-Supplement No. 20. 

Regi try No. 11 0~09. 

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UNIVER SITY OF FLORIDA 

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